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Medi-Sure Monitoring‘Alert Monitoring at it’s Best’ Fazal Chaudhry

2+Outline

Introduction

Hypothesis/Methodology

Regulatory

Marketing Plan

Operational Plan

Financial Plan

Conclusion

3+

What is Medical Alert Monitoring?

4

Retrieved From: http://www.silverangels.com/wp-content/uploads/2012/06/Hero_PersonalEmergencyResponseSystem3.png

Receiver Set Alert Monitoring Device

5+How Devices Have Been Useful so Far

Help elderly during falls and other sudden related injuries

Helped in the cases of wandering patients. Prevented use of physical restraints and chemical sedatives that lead to adverse side effects.

6How does it work in case of an emergency?

Retrieved From: http://www.permarsecurity.com/images/uploads/PERS%20PerMarDiagram_645x388.jpg

7+Sounds Great! So what’s the problem?

8+Issue: Can existing devices help in: Falls, resulting in loss of consciousness?

Alzheimer's or related Dementia wander away from base station?

High blood pressure?

Stroke?

Irregular heartbeat?

Seizure?

Can they easily monitor you when you leave your home?

Can they remove these worrisome thoughts to improve quality of life (QOL)?

9+Answer: No, They Can’t

+ 10Existing Market: Competitors

11+Flaws with Current Alert

Monitoring Devices?

1. Lack of life-saving hardware capabilities

2. Multiple devises

3. Low build quality

4. Costs

12+Result of Issues/Flaws

A huge void is created by the existing alert monitoring competitors.

Void results in an unmet need.

13

Solution:

Medi-Sure Monitoring

14+Seeking Investor

Seeking $700,000 in Venture Capital

1st stage financing: January 2015 $400,000 for engineering, design & testing

2nd stage financing: January 2016 $300,000 for regulatory pathways Also will aid in hire and training of employees,

production and provide for other necessary costing essential for business establishment.

15+Hypothesis:

By 2017, Medi-Sure Monitoring will be a viable medical alert monitoring business in the healthcare industry.

16+Methodology:

The primary methodology for testing the business feasibility (hypothesis) is dependent on financial analysis.

A consolidated pro-forma financial statement will be created to reflect the cost structure of companies in the industry.

Financial statements will then be constructed to reflect the higher cost of a better quality product and determine the feasibility on profit potential.

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Milestones To Achieve

Establish Medi-Sure Monitoring LLC.

Complete Product development.

FCC approval.

Locate space for leasing.

Hire first employees (Sales representatives).

Gain FDA approval.

First sale!

Obtain USPTO patent.

First profitable month!

Peak Sales - $1.1M for the month.

18+Mission-Purpose Vision

Our Mission: make Medi-Sure Monitoring a viable business by 2017.

Our Purpose: increase awareness of medical alert monitoring industry and bring MedaHelp to the elderly population in efforts to improve quality of life.

Our Vision: reshape the future landscape of the medical alert monitoring industry.

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+Introducing…

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MedaHelp Product Features• Integrated GSM modem• GPS Locator• Bluetooth® • Panic Button• Accelerometer• Altimeter• Emergency speaker• Heart rate monitor• Blood pressure monitor• Enhanced processing chip• Wireless charging• EnerChipTM Solid State

Battery• Waterproof• Wrist watch

Included: Stub (for landline connectivity) and 2-port adaptor (for landline phone jack)

+ 21

Chosen Manufacturer:

Located: Taipei, Taiwan

Managing Director: Bryan Moore

Medical device manufacturing experience

22+Why pick Titoma?

Possess Industry experience.

Deal directly with the regulatory agencies such as Federal Communication Commission (FCC).

Will obtain proper certifications International Protection (IP65).

Adhere to International Organization for Standardization (ISO-13485) which is harmonized with FDA Quality System Regulation (QSR).

Help facilitate in FDA process.

23+Developmental Process:

Retrieved From: http://www.titoma.com/product-development.php

24

+Regulatory

Plan

25+USPTO: Trademark

Trademark Medi-Sure Monitoring and MedaSure

Step 1, application will include a description of Medi-Sure’s goods and services offered

Step 2-5 Approximately 1 month.

If no objections are found, USPTO will publish the mark and a notice of allowance will be issued within 6 months (USPTO, 2010). Retrieved from: http://www.markmytrade.com/process-of-registering-a-trademark/

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Design Patent Application

1. Preamble; Includes applicant name, title & brief description of the nature and intended use of article.

2. Description of the figure(s) of the drawing

3. Feature description (optional)

4. A single claim

5. Drawings or photographs

6. Executed oath or declaration

File Non-provisional Application

An expedited examination process will then be considered for MedaHelp. Allow for the review within a 12 month time span.

If approved, a patent is granted for the term of fourteen years.

27+FDA Regulatory

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+Target Market

29+ Population Pyramid

Retrieved From: http://cnx.org/resources/c3de5f9474c018145c08f5d49add2969/Figure_13_01_06.jpg

30+Number of Persons 65+ 1900-2030

Retrieved From: http://www.aoa.gov/Aging_Statistics/Profile/2011/docs/2011profile.pdf

31+Geographic Distribution

Retrieved from: http://www.census.gov/content/dam/Census/library/publications/2014/demo/p23-212.pdf

32+Emergencies Resulting in Hospital Visits

Estimated population for 2015: 47.5 Million

A total of 19.6 million yearly emergencies result in a visit to the hospital (CDC, 2013).

This represents 511 visits for every 1,000 elderly (CDC, 2013).

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SWOT Analysis• All-in-one device Flexible Operation• Superior Pricing Great Build Quality• Superior Value

Strengths

• New Company No brand recognition • Limited Resources Small Sales Force• Initial negative profitability on device• No experience in industry

Weaknesses

• Increased Revenue Increased Growth• Demand for MedaHelp New Revenue

Streams• Existing Market Product Efficiency • Baby Boomer Generation Low Service Cost

Opportunities

• Rising Costs of Business Entering Competition• Price wars between competitors• Industry Consolidation

Threats

34+Location for Medi-Sure Monitoring

Location: Lincoln Park, New Jersey

Chosen due to: Low taxes

Benefits: Close proximity to New York, one of the largest business centers in the world.

35+Market Segmentation

MedaHelps target market is quite segmented.

Competitors offer different protection levels Adds different levels of security.

Added security features allow for carrying additional monitoring device and also adds significant costs.

Market segment is not governed by any geographic area but by product lines and pricing.

36+Market Segmentation

MedaHelp will fall into a new market segment since the existing segmentation is per feature and price.

Difficult to model market share for individual competitors due to lack of information and all competitors being privately held.

However, potential market size, competitor product details and pricing is known.

37+What Do We know

What we Don’t know

We don’t know competitor share.

We do know competitor pricing.

We do know competitor product detail.

We know that there is an existing market.

We know that there is an entering baby boomer generation.

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Strategy & Implementatio

n

39+Strategy & ImplementationPre-Launch

Create a website

Use organizations venues & key opinion leaders (KOL) to increase awareness of medical alert monitoring devices by showcasing their ability improve QOL.

This will be implemented 8 months before launch.

This strategy increases opportunity to maximize the potential market base.

40+Pre-Launch

Prepare call center staff-pre orders.

Advertise on Google AdWords and AdSense.

This will be implemented 2 months before launch.

This strategy aligns with achieving return on investment to make Medi-Sure Monitoring a profitable business.

41+Post-Launch Address unmet monitoring needs and its

potential for improving QOL.

This will be accomplished by sampling demo devices to key opinion leaders and various elderly support organizations and having them compare MedaHelp to its competitors.

Increase service staff and direct more revenue towards Google advertising.

Reach out towards consumer review websites such as: consumerreports.org, consunmeradvocate.org and

medical-alert-systems-review.com

42+Pricing Policy Unit and subscription pricing.

Bulk of the revenues and profitability will come from subscriptions.

Price: $89.99 per unit and subscriptions at $54.99 per month.

43+Advertising & Promotion

Direct promotions through website

Partnering with health professionals such as Geriatricians

Appealing to key opinion leaders with influence

Key Conference Venues The American Geriatrics Society (AGS) Medical Alert Monitoring Association (MAMA) Medical Occupational Therapy Association (AOTA) Assisted Living Federation of America (ALFA) Home Health Nurses Association (HHNA) American Association of Retired Persons (AARP)

44+ Advertising & Promotion: Budget

Initial advertising budget: $120,000 per year

Budget will address online advertising costs as well as cost for key opinion leaders.

Track results of online advertising by providing discount on the monthly subscription. A $5 per month reduction will be offered for the year, for every key leader referred client.

Online advertising will allow for tracking advertising effectiveness through Google AdWords and AdSense.

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+Operational

Plan

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Start-Up Fixed Costs

$250.000 As quoted by Bryan Moore, Titoma.

47+Operational Fixed Costs

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Location Costs

A lease for a 10,000 square foot commercial facility in New Jersey charging an annual rental rate of $7.00 per square foot.

Cost: $9,250 per month or $111,000 annually.

Serve as warehousing facility and service facility.

49+Technology Costs

Service: AT&T will provide Medi-Sure Monitoring IT needs and MedaSure coverage.

Cost: $4,300.00 per month

Retrieved From: http://www.corp.att.com/gov/images/one_fedgov_cloud_offers_costeff_primary_6unit_470x186.jpg

50+Payroll & FICA Taxes

Warehouse Employee: 40 hours per week, $12 per hour. $1,920 per month or $24,960 per year.

Call Center Employee: $15 per hour. $2,607 per month or $31,286 per year.

Cost Per Employee

51+Total Employee Cost

For every 2,000 subscriptions a 24-hour representative will be added to assure maintaining quality coverage of 168 hours per week.

A 24-hour employee is actually covered by 4 full time employees and 1 part time employee.

52+Cost of Goods & Service

Every 2,000-subscription mark will require additional staff of 24-hour service representative.

This can be a combination of 4 employees working 8 hours a day and a part timer to provide for flexibility in scheduling to avoid paying overtime.

53Pro-Forma Income Statement

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1 2 3 4 5

Total Revenue 0 88267.22 2115903.83 5790904.08 10721881.61

Net Income -304020 -190824.7125012

843903.310434926

2558847.84933293

5104701.48670146

(1,000,000)

1,000,000

3,000,000

5,000,000

7,000,000

9,000,000

11,000,000

Revenue & Income Growth

Total Revenue Net Income

Years

Dollars

($)

55

Financial Plan

56+Financial Plan

Seeking $700,000 in Venture Capital

1st Stage Financing: January 2015 $400,000 for engineering, design & testing

process with Titoma.

2nd Stage Financing: January 2016 $300,000 for FCC, USPTO and FDA approval

process.

57+Conclusion

The financial analysis deduces that Medi-Sure Monitoring can be a viable and profitable enterprise by providing MedaHelp to customers in the medical alert monitoring industry.

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+

Thank You!

Questions?Feedback

59+References:

CDC. (2013). Products - Data Briefs - Number 130 - October 2013. Retrieved from http://www.cdc.gov/nchs/data/databriefs/db130.htm

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61+Significant Milestones

•Medi-Sure LLC established.January 2015

•Product development completed.December 2015

•FCC approval granted.March 2016

•Location space leased.May 2016

•First employees (Sales representatives) hired.June 2016

•FDA approval granted.September 2016

•First sale!November 2016

•USPTO patent approved.December 2016

•First profitable month!February 2017

•Peak Sales - $1.1M for the month.December 2019

62+